The formula to calculate the Monthly Payment of Car Loan (MPloan) is:
\[ MPloan = PCL \left( \frac{R}{12 \cdot 100} \right) \left( 1 + \frac{R}{12 \cdot 100} \right)^{nm} \left( \frac{1 + \frac{R}{12 \cdot 100}}{(1 + \frac{R}{12 \cdot 100})^{nm} - 1} \right) \]
Where:
Monthly Payment of Car Loan is the total amount of payment done monthly to complete the car loan.
Principal Car Loan Amount is most commonly used to refer to the amount borrowed or the amount still owed on a car loan, separate from interest.
Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Months represent the total months for which a fixed payment amount is made by a borrower to a lender to complete the loan amount.
Let's assume the following values:
Using the formula:
\[ MPloan = PCL \left( \frac{R}{12 \cdot 100} \right) \left( 1 + \frac{R}{12 \cdot 100} \right)^{nm} \left( \frac{1 + \frac{R}{12 \cdot 100}}{(1 + \frac{R}{12 \cdot 100})^{nm} - 1} \right) \]
Evaluating:
\[ MPloan = 750000 \left( \frac{0.2}{12 \cdot 100} \right) \left( 1 + \frac{0.2}{12 \cdot 100} \right)^{45} \left( \frac{1 + \frac{0.2}{12 \cdot 100}}{(1 + \frac{0.2}{12 \cdot 100})^{45} - 1} \right) \]
The Monthly Payment of Car Loan is 16730.6336353975.
| Principal Car Loan Amount | Interest Rate | Months | Monthly Payment of Car Loan |
|---|---|---|---|
| 3000 | 0.2 | 45 | 66.92253454159008 |
| 4000 | 0.2 | 45 | 89.23004605545343 |
| 5000 | 0.2 | 45 | 111.53755756931680 |
| 6000 | 0.2 | 45 | 133.84506908318016 |
| 7000 | 0.2 | 45 | 156.15258059704351 |
| 8000 | 0.2 | 45 | 178.46009211090686 |
| 9000 | 0.2 | 45 | 200.76760362477023 |
| 10000 | 0.2 | 45 | 223.07511513863361 |
| 11000 | 0.2 | 45 | 245.38262665249695 |
| 12000 | 0.2 | 45 | 267.69013816636033 |
| 13000 | 0.2 | 45 | 289.99764968022367 |
| 14000 | 0.2 | 45 | 312.30516119408702 |
| 15000 | 0.2 | 45 | 334.61267270795037 |
| 16000 | 0.2 | 45 | 356.92018422181371 |
| 17000 | 0.2 | 45 | 379.22769573567706 |
| 18000 | 0.2 | 45 | 401.53520724954046 |
| 19000 | 0.2 | 45 | 423.84271876340375 |
| 20000 | 0.2 | 45 | 446.15023027726721 |